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Trends of Change in the Labour Market in Kerala, Sector-Wise: an Inquiry

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Trends of Change in the Labour Market in Kerala, Sector-Wise: an Inquiry Trends of Change in the Labour Market in Kerala, Sector-wise: An Inquiry Report Prepared by: Dr. Anitha V., Associate Professor, Department of Economics, University of Kerala, Thiruvananthapuram Sponsored by: Kerala Institute of Labour and Employment Thozhil Bhabhavan, Thiruvananthapuram 2017 Acknowledgements Let me express my sincere gratitude to many people who have been instrumental in the successful completion of this work. First of all, my thanks are due to the Kerala Institute of Labour and Employment (KILE), for its financial assistance and other services. The core committee for research of KILE has provided me with very appropriate guidelines for developing a design for the study and constructive comments on the preliminary reports for corrections and ensure the quality of the study. Primary data were collected from English Indian Clays Ltd., Kerala State Road Transport Corporation, Co-operative Spinning Mill(Chathannoor), United Electricals Ltd, (Kollam), Indian Coffee Houses(Thiruvananthapuram and Kollam), Companies in the Techno park, textile shops, a few households and head load workers. Secondary data were obtained from documents provided by these institutions and also from the internet. The workers and the union leaders were very open in their view points. Senior Managing Directors, HRM Managers, subject experts and heads of households were very critical about the various aspects of the current labour market. Sincere thanks are due to all of them who have enriched the study with facts and figures and constructive criticisms. Anitha V. i List of Tables 4.1 Growth engines of Kerala economy: industry/sector and the 40 emergence of business land scape 5.1 Classification of techies on the basis of their monthly remuneration 44 5.2 Techies on the basis of opinion regarding their remuneration 45 5.3 Classification of techies on the basis of their overtime work 45 5.4 Techies on the basis of opinion regarding additional payment 46 5.5 Techies on the basis of opinion regarding the facilities at workplace 46 5.6 Techies’ relationship with others at work place 47 5.7 Techies’ opinion regarding labour laws and policies 48 5.8 Workers on the basis of their opinion in terms of levels of 52 satisfaction 5.9 Workers on the basis of their monthly remuneration 55 5.10 Satisfaction of workers regarding their remuneration 55 5.11 Classification of workers on the basis of daily hours of work 56 5.12 Classification of workers on the basis of their break during the 56 working time 5.13 Satisfaction of workers regarding their bonus 57 5.14 Workers opinion regarding their relationship with others 58 5.15 Satisfaction regarding the employer/employee and different aspects 59 (in Percentage) ii List of Diagrams 4.1 Factors which Impact on the Labour Market in Kerala (2017) 36 4.2 Impact of the Labour Market on Employers and Business (2017) 37 4.3 Wealth Creation if there is “Ease of Doing Business” 39 iii List of Abbreviations AITUC All India Trade Union Congress ALCAN Aluminium Canada BFSI Banking Financial Services and Insurance CIRC Coir Industrial Relations Committee CITU Centre of Indian Trade Unions COMINCO Consolidated Mining Company, Canada CSR Corporate Social Responsibility E-E Employer-Employee ESI Employees State Insurance GoI Government of India HRM Human Resource Management IIPM Indian Institute of Personal Management INTUC Indian National Trade Union Congress INR Indian Rupee IT Information Technology KSRTC Kerala State Road Transport Corporation KTUC Kerala Trade Union Congress LM Labour Market NBFC Non-Banking Financial Company RSP Revolutionary Socialist Party TU Trade Union UTUC United Trade Union Congress iv Contents Acknowledgements i List of Tables ii List of diagrams iii List of abbreviations iv Preface vi Experts who guided the Study with Facts and Figures and Critical Comments vii Executive summary ix Chapter Page I Introduction 1 II Theoretical Underpinnings and Review of Literature 5 III Methodology 13 IV Trends of Change in the Kerala Labour Market: Twists and Turns Over 17 the Years V The Current Scenario 42 VI Conclusions and Observations 65 Appendices Appendix I Bibliography I Appendix II Interview Schedule for Senior Managers, III Workers, Subject Experts and TU Leaders Appendix III Interview Schedule for workers VII v Preface Trends of change in the labour market during the past 100 years in Kerala is a very complex subject for an empirical study. Facts and figures are available but with a prejudice. The left-oriented leaders and the writers are found to be strong patrons of labour while the proprietors and managements of industries – big and small, are highly critical of their workers and their union leadership with a host of complaints and grievances. Obviously, it is difficult for a research scholar to be impartial and independent to understand, analyse, discuss and arrive at meaningful inferences from the twists and turns of the very vibrant labour market in Kerala which is unique in several respects, compared to the labour and the industrial scenario of other states in India. It is found that most of the managements of industrial units are reluctant to issue “a good conduct certificate” to their workers in respect of their productivity, discipline in work, obedience to the instructions of their superiors and are suspicious of their loyalty to their organisation and vice versa. According to a senior retired Managing Director of a reputed company in Kerala, “The Malayali workers are an asset to the organisations in other states and abroad but quarrelsome and frequently obstructive to the smooth functioning of the factories in Kerala.” Perhaps, this “aggressiveness” may be due to their class-consciousness and lack of faith in the capitalism of the so called bourgeoisies. The “interesting discovery” of the study is that the average Malayali worker is suspicious of the managements of private enterprises; they prefer to have industries and institutions owned and managed by the State. These were only the wild, hypothetical thoughts of this researcher prior to initiating the study. The findings and observations are given, in detail, in the report. Anitha V. vi Experts who Guided the Study with Facts and Figures and Critical Comments 1. Sri. V.V. Vijayan IAS 2 S. Girish Kesavan Labour Commissioner (Retd.) Managing Director (Retd.), and former Managing Director, United Electrical Industries, Travancore Titanium Ltd. Kollam 3 Sri. Anathalavattom Anandan 4 Sri. V.J. Joseph, General President, CITU (Kerala) Secretary, INTUC, State Committee 5 Sri. M. Sivadas 6 Sri. Alias M. V. Additional Labour Senior Manager HR and IR, Commissioner (Retd.) English Indian Clays Ltd. Thiruvananthapuram 7 Sri. M.S. Sreekumar 8 Sri. G. Rajmohan HRM Manager (Retd.) Former Chairman & Chief (KELTRON & Binani Zinc) Managing Director HLL, Thiruvananthapuram 9 Prof. Dr. Radhakrishna Pillai 10 Sri. P.O. Yatheendramohan (Retd.) Former Director, Management Consultant State Bank of Travancore Trivandrum 11 Sri. K.S. Vijayan 12 Sri. K. Suresh Babu Director (Retd.) National Secretary, INTUC Kerala State Road Transport Corporation 13 Sri. P. Devadas 14 Sri. A. Younus Kunju Deputy Manager, HRM (Retd.), Proprietor, Younus Cashew KELTRON Industries, Kollam Former Vice-Chairman, Cashew Export Promotion Council vii 15 Sri. TSN. Pillai 16 Dr. J. Rajan, Prof & Head, Professor (Retd.) IMK, University of Kerala Loyola College of Social (Retd.) Sciences 17 Dr. Manu Bhaskar, Prof. & 18 Sri. S. Thulaseedharan, Head, Sociology Department, Addl. Labour Commissioner University of Kerala (Retd.) (IR) 19 Dr. Jayaprakash, HRM 20 K. P. Sankaradas, Manager, Spinning Mill, Co- Director(Non-official) Kerala operative Chathannoor State Road Transport Corporation 21 N. Padmalochanan, State 22 P. Sundaran, MD, Sreelekshmi Secretary, CITU, Kerala Cashew Company and Chairman, The Cashew Export Promotion Council of India viii Trends of Change in the Labour Market in Kerala, Sector-wise: An Inquiry Executive Summary 1. The Background The labour market in Kerala is very complex, vibrant and has been changing continuously. It is visible from the janmi-kudiyan master-servant system, followed by management-dominant British-colonial system, union- dominant bargaining system during the post-Independent period, union-free IT parks and a policy change (1991) of the Central government in favour of the private sector and a controlled labour sector to promote “the ease of doing business”. In this context, the question arises: what are the driving forces (variables) that cause these changes and their implications for the industry, employment opportunities and the larger economy, especially in the State of Kerala. It is obvious that this is a longitudinal study from a historical perspective. It covers a period of almost a century, from 1920 onwards. 2. Objectives of the study The main objective is to identify and document the trends of change (sector- wise) and their characteristics which the labour market in Kerala undergoes, from a historical perspective. Specific objectives 1. To identify the major factors (variables) which impact on the labour market(LM) and bring out the changes 2. To study the impact of the major changes on labour and the employers and their consequences for the State’s economy. 3. To formulate guidelines, on the basis of the findings of the study, for integrating the needs of labour and that of the employers so that the labour-market is not an arena for frequent conflicts but for cooperative partnership. 3. The sectors The main sectors of the economy consists of agriculture, plantations, manufacturing, construction, IT, service sector consisting of hospitals, schools and colleges, shops and other commercial establishments, traditional industries such as handlooms, pottery, coir, cashew and handicrafts and the vast coastal-fishing and fishermen. Kerala has a big labour market in all these sectors who are members of about one crore households. ix 4. Major concept The concept “labour” means, “practical work, especially when it involves hard physical effort. It also means “workers, especially people who do practical work with their hands” (Cambridge Dictionary).
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